As Iberia losses fall, IAG swings to profit

IAG has spent €700 million on restructuring Iberia

International Airlines Group says the positive results of its restructuring of Iberia are starting to be seen, now that the group has swung to a quarterly profit.

IAG has so far spent around €700 million on restructuring Iberia. This helped to cut losses in the second quarter, for the first time in almost three years.

After its merger with British Airways in 2011, the Spanish airline became unprofitable in all markets, including long haul. But now, “Iberia has started to turn the corner,” as IAG’s chief executive Willie Walsh put it. “It is starting to see the benefits of cuts to costs and capacity, but there’s still a long way to go.”

Cost cuts mean mass job cuts, and IAG has slashed 1,700 jobs at Iberia and plans to take that figure to more than 3,000 by 2014.

Reuters

[photo courtesy oneworld]

x

Check Also

Emirates, Ryanair, Flybe, Austrian, Virgin, British Airways, easyjet, American Airlines, airlines, load factor, PLF, fullest, planes, aircraft, environment, business, profit

Airlines with best and worst load factor

Flying planes full makes airlines far more profitable, and it’s better for the environment.

Iberia, London, Madrid, flight, Nicaragua, Managua, new, route, Central America, beach, adventure, trekking, surfing, Granada, tourism, travel

Iberia confirms new route to Nicaragua

Nicaragua is becoming a popular adventure and cultural tourist destination.

Gunnar Garfors, Norwegian, record, fly, round the world, airlines, flights, Sydney, Emirates, Iberia, Copa, Qantas, Dutch

Norwegian man sets round-the-world record

Passenger sets new Guinness World Record for travelling the world on scheduled flights.

Norwegian, transatlantic, low-cost, long-haul, South America, Argentina, company, business, domestic, Buenos Aires

Norwegian breaks speed record

A New York to London flight smashes the transatlantic record.

Lufthansa beats Ryanair as Europe’s top airline

Lufthansa Group as a whole carried 130 million passengers in 2017

Niki, Austria, Lufthansa, IAG, buy, airline, Lauda, deal, bid

IAG buys Niki: what to watch for

Are IAG and Vueling the deal’s only winners?